BCUC Approves BC Hydro's $825M Purchase of 1/3 of Waneta Dam
Following up on an earlier blog post, today, the British Columbia Utilities Commission approved BC Hydro's request to purchase a 1/3 interest of the Waneta Dam from Teck Metals Ltd., calling it "in the public interest". See the attached order from the BCUC.
The BCUC also determined that BC Hydro's consultations with First Nations with respect to the Waneta Transaction were adequate and upheld the honour of the Crown. The BCUC's reasons for the decision will be released at a later date.
When the transaction closes, the Waneta Dam, located in Trail, BC, will provide BC Hydro with access to 167MW of firm capacity and 890 GWh/year of energy. Adding the interest in the Waneta Dam will also help the Province meet its electricity self-sufficiency objectives.
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The cost per GWh is therefore 825/890 = $930,000 per GWh - and BCUC has deemed this investment as in the public interest.
Comparing to IPP run-of-the-river production cost at $700,000 to $900,000 per GWh, which is actually less than the Waneta dam - it becomes abundantly clear that the public-power people who are against IPP production are so wrong when they say IPP power costs more.
IPP power costs less than the Waneta dam, which has been an environmental disaster and will never receive a permit today. Do the public power people (i.e. COPE 378) actually prefer more costly power with an unacceptable environmental impact when they irrationally oppose IPPs?